Analyst Note| Matthew Dolgin, CFA |
It’s been less than 18 months since CyrusOne’s surprising announcement that it had immediately parted with its longtime CEO and that an interim CEO would be leading the earnings call. The firm announced a permanent CEO, Bruce Duncan, exactly 12 months ago, but with the second-quarter earnings release on July 28, we learned that he, too, has now been replaced. Board member, co-founder, and former CEO Dave Ferdman is now interim CEO. The C-Suite turmoil overshadows what we thought was a good quarter. Bookings were solid, the firm ended the quarter with a record backlog, and Europe remains a source of strength. The firm’s slight full-year guidance raise was due only to pass-through revenue, and we are maintaining our $66 fair value estimate.